4 ms·

Uber is running out of runway I see. Who knew that losing money on every trip you sell was an unsustainable business model?

• rightbyte 4y ago
  Their software engineering overhead is just insane. I found some numbers from 2018 which states that there are about 90 000 FTE Uber drivers to some 1000s engineers. It is really strange setup for a cab company. They are using their scale for bloat rather than a scale advantage. https://www.epi.org/publication/uber-and-the-labor-market-uber-drivers-compensation-wages-and-the-scale-of-uber-and-the-gig-economy/ https://www.epi.org/publication/uber-and-the-labor-market-ub...
  • djbebs 4y ago
    The whole business has bad economics, and it's been a perfect example of Venture Capitalist charity
    • deepsun 4y ago
      Same as Wework, but as far as I see, WeWork carved out their chunk of the market (by pricing out competition using price dumping). Now, once they killed some competitors, they are regular player on the co-working market, with regular prices. I tend to think this is bad for economy in general, as it emphasizes capital over innovation.
  • kramerger 4y ago
    What stops a much smaller company to create a more efficient solution and take over the market now?
    • deepsun 4y ago
      Billions of investment? Not unique to ride sharing, but pretty much every other common type of business.